Sara Snider
The Source
Why third-party verification?
Unfortunately, the days of doing business on a handshake are gone. I think the agriculture industry probably held on the longest, but as our markets have expanded, so have the documentation requirements for our products.
When selling to a neighbor, you may still be able to get by on your "word." You tell him the breeding behind the calves, the shots that you have given, and you shake hands to seal the deal. But as you start selling your cattle across state lines, or as an industry we start selling our product into export markets, the restrictions and requirements increase. The need to "prove" your marketing claims emerges. That is done through third-party verification.
Third-party verification usually raises some questions from producers. What is it? Why do I need it? Basically, third-party verification means that an approved entity independent from your operation has verified the information you are providing. The information that is verified varies, depending on what and where you are selling. Third-party verification is necessary to meet the requirements of certain markets. Let's look at a few examples.
Across state lines
The most common would be shipping cattle across state lines. This is third-party verification in its most common form. In fact, many producers don't even realize they are participating. Each state has different import requirements. I grew up in Michigan, so I will use those as an example. You can find the requirements for each state at: www.aphis.usda.gov/import_export/animals/
animal_import/animal_imports_states.shtml
In Michigan, if cattle being imported are not going directly to slaughter, they must be accompanied by an interstate health certificate or certificate of veterinary inspection. In this instance, the veterinarian is the third party verifying the health of the animals. You wouldn't expect them to take your handwritten note saying, "my cattle are healthy," would you?
Michigan also has requirements regarding brucellosis. There are some age restrictions, but, simply put, the rule is as follows: To cross state lines, cattle must originate from a certified brucellosis-free herd (certified by an approved third party), a state that has been certified brucellosis-free for six consecutive years (certified by an approved third party) or test negative to an official brucellosis test within 30 days prior to importation (test is given by an approved third party).
Michigan also has requirements in regard to bovine tuberculosis, once again involving third-party verification from a vet or approved agency that they have been met.
If you have been selling cattle to operations in other states, I am sure you have experienced requirements similar to those found in Michigan. Although not stated as third-party verification, fundamentally it is the same. Someone independent of your operation is providing the necessary documentation that "verifies" the information needed to meet the state's requirements.
Across the pond
Export markets have added a lot of value to U.S. beef products. Some export markets have specific restrictions and requirements. Third-party verification is the mechanism used to meet those requirements. If you want your cattle to be eligible to supply export markets, most likely the third-party verification needed will require a lot more involvement from you as compared to the state import requirements. In many cases they will charge you to participate, but there are usually incentives when it comes time to sell that will cover your costs and put more money in your pocket.
Let's focus on Japan. After all, age verification remains one of the most talked about programs in the industry. In order for product to be exported to Japan it must be from cattle that were 20 months of age or younger at harvest. You may also see this stated as under 21 months of age at the time of harvest. The age must be verified through an approved program (third-party verified), cattle must be fed in an approved yard (third-party verified) and harvested at an approved packer.
I will use the AngusSource program as an example to focus on age verification. Keep in mind that some verification programs may have different requirements.
How did AngusSource become a third-party verification program? On our end, AngusSource has built what is called a process-verified program (PVP). This means we have built a system of requirements, forms and operating procedures that are approved by the USDA. We are then "authorized" to be the third party verifying your claims. The claims AngusSource is approved to verify are source, age and genetics.
In addition to our initial approval from USDA, we are required to have an annual audit where someone from USDA comes to our office to make sure we are following all of our written procedures and guidelines. In addition, they require that we do on-site audits (reviews) with producers and feedyards using our program. The entire system is designed to provide checks and balances as well as an auditable record trail for every claim being made.
Age is a fairly easy claim to verify. It doesn't change throughout the life of the animal. In other words, once the producer keeps the record and the record is approved by the AngusSource program and the cattle are enrolled and tagged the age is "verified." As long as the AngusSource tag stays in the animal's ear, the verification remains intact.
Most producers are already keeping the records required for AngusSource to verify the age. AngusSource works off of a "group age," which means that we require you have a record of the actual date of birth of the first calf born within that calving season. All calves enrolled together will then share that birth date. Since many large operations are unable to keep individual calving records and tag their calves at birth, this seemed the easiest and most flexible way to verify age. It meets the Japan export requirements very well. If the oldest calf in the enrollment group is younger than 21 months of age at harvest, then all of the younger calves are, as well.
How does AngusSource "verify" your records? The bottom line is the integrity of all of these programs still relies on the producer's honesty. Unless we are there to see the bull breed the cow, we can't verify genetics. We would have to actually see the calf be born to verify the source and the age of that animal. That is impossible. We rely on your records and your honesty as a producer to make the system work. We use the process-verified program to make sure that the producer understands the importance of accuracy and honesty and that their records support the claims they are making.
For age, AngusSource requires that you submit a copy of your calving records. During a phone interview we then discuss management practices, cow numbers, bull turnout dates, etc. All of this information gives us a "big picture" of your operation. We can then determine whether the information submitted to us meets the requirements outlined in our PVP. If the requirements are met, we will "approve" the producer and the enrollment.
Enrolling calves at the ranch level is only the beginning of the paper trail and third-party verification required for the product to be eligible to export to Japan. If calves are enrolled in AngusSource, Gateway or another program that uses program-compliant tags, they can be sold through an auction market, or be purchased by a backgrounder or stocker without any other paperwork. Remember, the verification remains intact as long as the tag stays in the ear. The paper trail begins again at the feedyard.
The feedyard that finishes the age-verified cattle must also be enrolled in an approved program. They are trained by the program and their ability to meet the requirements is verified. Feedyards enrolled in the AngusSource Feedyard Umbrella Program are required to read the tags of the calves they have on feed to make sure they are properly enrolled and that their age is verified. The feeder is also responsible for traceability of those calves while they are on feed and for providing documentation to the packer. A "20 month harvest by date" is calculated for calves when they are enrolled at the ranch level. This is the date that calves MUST be harvested by in order for the product to be eligible for export. When feeders ship cattle to the packer, it is their responsibility to make sure that the calves will be harvested prior to that date.
The final step is the packer; they have the responsibility of making sure the paperwork is in order and that the product, harvested from the age-verified calves, that meets the Japan requirements is traceable in the plant. If everything throughout the system isn't completed, product isn't eligible for export and dollars are lost.
Third-party verification is about meeting the demands of our customers in a proven and auditable way, meaning a record trail is in place that provides traceability. Our customer (Japan) has demanded a product (harvested from cattle 20 months of age or younger) from our beef industry. Each part of the production chain plays a role in making sure we can export that product to Japan. We didn't set the requirements, but we can help the industry meet them.
It is the goal of the American Angus Association to provide programs and services like AngusSource that will help expand your marketing options in the most cost-effective and easiest way possible.
If you would like more information on third-party verification or would like to get started on your enrollment, please visit www.angussource.com or call our office at 816-383-5100.
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